RIGA - During the crisis caused by the Covid-19 pandemic, it is important to maintain the economic capacity of the European Union by investing in the preservation of companies and jobs, European Commissioner Valdis Dombrovskis said during an EU forum on Tuesday.
He said that the Covid-19 pandemic would have an impact on the entire EU. However, it is too early to judge the specific impact, which will only become clear once the EU member countries begin easing restrictions imposed during the Covid-19 crisis. The European Commission's next economic forecast is expected in early May.
Right now it is now important to maintain the capacity of the European economy by supporting businesses and preserving jobs. The better the EU's productivity capacity is maintained, the sooner we will be able to recover from the crisis, Dombrovskis emphasized.
He pointed to a number of decisions taken at the EU level to support member countries in overcoming the Covid-19 crisis. As an example, the commissioner mentioned the Commission's decision to lift restrictions on member countries' budget deficits and debts, allowing the countries to stimulate their economies.
Measures are also being taken to facilitate the financial sector's ability to invest in the economy. Currently, the financial sector is not part of the problem as it was in 2008, said Dombrovskis. Later today, he will present amendments to capital rules, which are intended to stimulate lending. These amendments are necessary to make banks more responsive, Dombrovskis added.
Altogether, national and EU measures amount to a total of EUR 3.4 trillion, said Dombrovskis.